RSK has been moving toward the decentralized finance space during the last seven months
The RIF (RSK Infrastructure Framework) development team announced on October 6, 2020 that the Makerdao project’s DAI stablecoin is now available via the smart contract protocol RSK. According to the software engineers, RIF developers leveraged the RSK-Ethereum token bridge and individuals can now utilize the Ethereum-based stablecoin across a myriad of decentralized applications (dapps).
The Bitcoin (BTC)-backed smart contract protocol RSK has been steadily moving toward the decentralized finance (defi) space during the last seven months. News.Bitcoin.com reported on RSK’s defi efforts and a number of RSK-based defi projects already in the wild. On Tuesday, software engineers announced that the smart contract project now supports Makerdao’s DAI stablecoin. RIF developers believe the newly added support will bolster defi services on the BTC chain.
In order to execute the DAI stablecoin support, RIF engineers utilized the RSK-Ethereum token bridge. Now that DAI is integrated with RSK, the stablecoin can be leveraged for BTC-backed defi services like borrowing, lending, liquidity pools, and staking.
Rune Christensen the cofounder of Makerdao and the Maker Foundation explained that the new DAI integration adds more accessibility to defi.
RIF integrating DAI creates a new world of opportunity for the bitcoin community to participate in defi, Christensen said during the announcement.
According to the RIF development team, a slew of dapps are already leveraging the stablecoin via BTC-backed and ETH-backed defi services. This includes projects like Rskswap, Aave, Sovryn, Avaldao, and Chainlink. The Rskswap creators have invoked liquidity pools for RIF-DAI and RBTC-DAI and claim people can transact with the stablecoin for 1000x less than using the Ethereum chain. Rskswap is a fork of the popular Ethereum-based decentralized exchange (dex) Uniswap.
Iovlabs, the parent company of Bitcoin smart contract platform RSK and its Infrastructure Framework (RIF), thinks the DAI integration will bolster defi growth on the BTC chain. Iovlabs cofounder and CEO, Diego Gutierrez Zaldivar, stressed that “DAI integration is another key step towards Bitcoin defi adoption.”
We are confident the growth of the Bitcoin ecosystem and its defi opportunities has only just begun, with much more to come, Zaldivar added.
According to the RIF team, the Bitcoin-Ethereum bridge has been reviewed by the Maker Foundation Integrations Team.
The interoperability bridge locks the original token such as DAI on the Ethereum blockchain while minting an ERC777 ‘side token’ that can move freely on the RSK network, the RIF software engineers conclude. This maintains the existing supply of tokens while allowing them to be distributed between chains.